REPORT IN BRIEF

Request is made that Council reject all bids received in response to Invitation for Bids No. F0403-53 to furnish and install a biological evidence freezer for the Department of Public Safety (Public Works Project No. PR-04/01-05).

BACKGROUND

The existing Public Safety evidence freezer has an area of approximately 110 square feet and is over ten years old. Its temperature-controlled environment holds DNA evidence required for the prosecution of criminal cases.  The existing freezer has reached its storage capacity, and the age of the unit has raised concerns about its reliability.

DISCUSSION

Bid specifications were prepared by Public Safety, Public Works and Purchasing staff.  The specified scope of work included replacing the existing freezer with a 400 square foot unit and included site modifications at Public Safety Headquarters, such as roof expansion, concrete work, brickwork, fire sprinkler modifications, etc., to accommodate the larger footprint in the same location.  Bid specifications also required that a temporary freezer be provided on-site while the old freezer is being replaced.

The Notice Inviting Bids was published in The Sun on April 9, 2005. The bid package was distributed to Bay Area Builders Exchanges and broadcasted to potential contractors through the DemandStar by Onvia public procurement network.  Seven contractors requested bid documents.

Sealed bids were publicly opened on May 4, 2005. Three responsive bids were received.

The low bid exceeds the project budget which is based on planning estimates that are several years old. In addition, bids by subcontractors to furnish and install the freezer appear to be excessive for a project of this nature, even after taking into account recent increases in steel pricing.

Staff recommends rejecting all bids and redesigning the project, including relocating placement of the new freezer to simplify the scope of work and reduce the number of subcontractors required.  Staff has now identified an alternate location for the new freezer which will accommodate a more standard and, therefore, less expensive configuration and provide much closer access to electrical power, thereby reducing conduit runs and material costs.  Changing the freezer location will also make it possible to continue to use the existing freezer during the construction phase and eliminate the need for and expense of bringing a temporary freezer on-site to store existing evidence.

FISCAL IMPACT

There will be no direct fiscal impact to rejecting all bids.  Instead, redesigning the project, as suggested, should result in lower pricing for the following reasons:  It will significantly reduce contractor costs, and it should encourage more contractors to submit quotes.

RECOMMENDATION

It is recommended that Council:

1.       Reject all bids received in response to Invitation for Bids No. F0403-53 to furnish and install a biological evidence freezer for the Department of Public Safety, and

2.       Direct staff to redesign and rebid the project.

Prepared by:

Elaine Wesely

Purchasing Officer

Reviewed by:

Mary J. Bradley

Director, Finance

Reviewed by:

Marvin Rose

Director, Public Works

Reviewed by:

Don Johnson

Director, Public Safety

Approved by:

Amy Chan

City Manager